Question 1

Which of the following is a financial performance measure at an organizational level

Accepted Answer

Revenue and profit are both financial performance measures at an organizational level as they reflect the financial success of the organization in terms of generating revenue and earning profit. Cost of quality, budget variance, and labor and material costs are also important financial measures, but they may not necessarily capture the overall financial performance of the organization.

Question 2

Measures of__________focus on an organization's people and infrastructure.

Accepted Answer

Measures of innovation and learning typically focus on an organization's people and infrastructure, including factors such as employee training and development, knowledge management, and technology investments. The other options listed focus on different aspects of the organization, such as the design of goods and services, customer satisfaction, and service quality.

Question 3

The__________is based on a set of cause-and-effect linkages between internal and external performance, and in this fashion, defines the key performance measurements on which service-based firms should focus.

Accepted Answer

The Service-Profit Chain model is specifically designed for service-based firms and focuses on the linkages between internal and external performance. It defines key performance measurements that service-based firms should focus on. The other options are models that can be applied to any type of organization, but they do not specifically address the unique challenges and opportunities associated with service-based firms.

Question 4

__________is the willingness to help customers and provide prompt recovery to service upsets.

Accepted Answer

Responsiveness refers to the willingness of the service provider to assist customers and provide prompt recovery to service upsets. Empathy refers to understanding and caring about the customer's needs, assurance refers to the knowledge and courtesy displayed by employees, and reliability refers to the ability of the service provider to deliver the service as promised.

Question 5

Which of the following performance perspectives in the balanced scorecard model includes the percent of sale from new goods and services

Accepted Answer

The percent of sale from new goods and services is a measure of customer satisfaction and loyalty, making it a part of the customer perspective in the balanced scorecard model. The financial perspective focuses on financial measures such as revenue and profit, the innovation perspective focuses on measures related to research and development, and the learning perspective focuses on measures related to employee training and development.

Question 6

The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called__________.

Accepted Answer

The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called interlinking. Productivity is a measure of output per unit of input, operational efficiency refers to the ability to utilize resources effectively to achieve organizational goals, and sustainability refers to the ability to maintain or improve performance over time while minimizing negative impacts on the environment and society. None of these concepts specifically involve the modeling of cause-and-effect relationships between external and internal performance criteria.

Question 7

_____ is the ratio of the output of a process to the input.

Accepted Answer

Productivity is the measure of the output of a process relative to the input. It is typically measured in terms of efficiency and effectiveness, and is a key factor in determining the success of a given process or organization. Flexibility, variability, and reliability are all important factors in their own right, but are not directly related to the ratio of output to input.

Question 8

Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders

Accepted Answer

The financial perspective in the balanced scorecard model measures the financial performance of the company, including metrics such as revenue growth, profitability, return on investment, and shareholder value. The ultimate value provided to shareholders is captured in this perspective. The other perspectives (internal, learning, and customer) focus on other aspects of the business, such as internal processes, employee training and development, and customer satisfaction, respectively.

Question 9

Which of the following performance perspectives in the balanced scorecard model includes measures such as productivity, flow time, and asset utilization

Accepted Answer

The internal perspective in the balanced scorecard model includes measures relating to the internal operations and processes of the organization, such as productivity, flow time, and asset utilization. The financial perspective focuses on financial performance, the customer perspective on customer satisfaction and loyalty, and the innovation and learning perspective on measures such as employee training and development and innovation.

Question 10

The innovation and learning perspective in the balanced scorecard model includes measures such as:

Accepted Answer

The innovation and learning perspective focuses on internal growth and development, including measures like training hours per employee, hiring process effectiveness, and revenue per employee, which are related to improving skills and efficiency.

Question 11

In an assembly line of a factory that makes gears, it takes fifteen minutes to complete a drilling operation using a lathe. The duration of this operation is called _____.

Accepted Answer

The duration of a specific operation in a manufacturing process is called the processing time. In this case, the processing time is the amount of time it takes to complete the drilling operation using the lathe, which is fifteen minutes. Delays and queues may occur during the manufacturing process, but they are not the duration of a specific operation. Standard time refers to the amount of time it should take to complete a task under normal conditions, but it is not specific to a particular operation in a manufacturing process.

Question 12

The time required to ramp up to an increased production output level in response to a surge in the sales of a product is a measure of _____.

Accepted Answer

The time required to ramp up production in response to increased sales is a measure of volume flexibility. Volume flexibility is a measure of a company's ability to adjust production levels in response to changes in demand. This can be affected by factors such as the availability of raw materials, labor resources, and production equipment. Budget variance refers to the difference between the actual and planned budget for a specific period, while product recalls refer to the process of removing and replacing defective or potentially harmful products. Service upset refers to issues or problems in the delivery of services.

Question 13

In the context of the triple bottom line (TBL), which of the following is a performance measure of economic sustainability

Accepted Answer

The answer of In the context of the triple bottom...

Question 14

The ability of an organization to respond quickly to changes in the quantity and type of demand is called _____.

Accepted Answer

Volume flexibility refers to an organization's ability to respond quickly to changes in the quantity and type of demand. This is important in ensuring that a company can meet the needs of its customers while maintaining efficiency and profitability. Utility refers to the overall usefulness or value of a product or service, while reliability refers to the ability of a product or service to function consistently and without failure. Demand variability refers to fluctuations in customer demand, which can pose challenges for companies in terms of forecasting and inventory management.

Question 15

Airline revenue per passenger mile and hotel revenue per full-time employee are examples of _____.

Accepted Answer

Airline revenue per passenger mile and hotel revenue per full-time employee are both examples of productivity measures, which track how efficiently a company is using its resources to generate revenue. These measures are used to evaluate a company's profitability and compare it to competitors in the industry.

Quiz 2: Measuring Performance in Operations and Value Chains